------ Are Rules of Thumb That Help Us to Simplify

question 16

Multiple Choice

------ are rules of thumb that help us to simplify problems that do not guarantee a correct solution.

• A)algorithm
• B)heuristics
• C)motivation
• D)mental set

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Definitions:

Marginal Costs

The additional cost incurred by producing one more unit of a product or service, crucial for decision-making in economics and business.

Property Rights

The legal rights to possess, use, and dispose of assets, property rights are foundational to free market economies and influence resource allocation and investment.

Marginal Benefits

The additional satisfaction or utility gained from consuming or using one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, considering both the direct costs and any externalities.